Financial analysis is defined as the process of identifying financial strengths and weaknesses of the firm by properly establishing relationship between the balance sheet and the profit & loss account.
Analysis of financial statements is an attempt to assess the efficiency and performance of an enterprise. Thus, the analysis and interpretation of financial statements is very essential to measure the efficiency, profitability, financial soundness and future prospects of the business units. Financial statements are usually complied on a monthly, quarterly and annual basis. Financial Analyzer is a web application that you can use to:
Report and analyze corporate financial data and create financial budgets, forecasts, and plans. Configure an efficient and convenient financial system for your business.
Features and Functionalities Under accounting structure following entities can be maintained. Legal Entity:A legal entity is an individual, business, or organization that has the legal capability of entering into a contract with another entity. Essentially, this status makes it possible for a properly incorporated organization to function in the same manner that an individual can, when it comes to entering into binding contracts for all types of goods and services. Operating Unit:Operating Unit is basically a logical division or sub-division of a company that the company management decides to operate. Hence, one set of books (or ledger) will have many operating units. The operating units are also called sub-ledger. The Operating Unit has to be assigned a Legal Entity. Inventory Organization:An inventory organization can be a physical entity like a warehouse where inventory is stored and transacted or it can be an organization that manufactures and distributes products or both. An inventory organization can also be a logical entity like an item master organization which only holds items with no transactions. Natural Account:Natural accounts can be any of five types that are: Expense, Equity, Liability, Revenue and Assets. Natural accounts are the actual accounts that are mapped to the line grouping for financial statements that hold data in them for organization. Accounts can be managed to be used for budgeting or not. Some accounts may hold values that does not require to be used for budgeting. Financial Statements Following of the financial statements can be used for reporting.Balance sheet:A balance sheet is a summary of the financial position at a specific point in time. It presents the economic resources of an organization and the claims against those resources. Cash flow statement:A cash flow statement shows where an institution's cash is coming from and how it is being used over a period of time.The Profit and Loss Statement:A profit and loss statement explains how efficiently a business purchases and sells inventory. This is your income statement less the costs of running your business, which can be analyzed monthly, quarterly or yearly. See More Brochure Download
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